The Gen XY Lifestyle
Younger Singaporeans Eye Early Retirement
According to the Etiqa Insurance Singapore Retirement Insights Report 2024, a majority of Singapore’s millennials and Gen Z are targeting early retirement.
These younger generations are planning to retire in their 50s, with a notable trend starting their planning in their 30s.
Retirement Goals and Financial Confidence
A striking 81 percent of Singaporeans aim to retire between 50 and 70, with millennials and Gen Z leading the charge towards a retirement age of 60. Despite starting their planning relatively late, many millennials (75 percent) and Gen Z (69 percent) are optimistic about achieving their retirement goals. Interestingly, these generations believe they can maintain their retirement lifestyle with a monthly budget under SGD 6,000.
The Need for Robust Planning
The report underscores the crucial need for comprehensive retirement planning, as the cost of living and inflation rates soar. Raymond Ong, CEO of Etiqa Insurance Singapore, emphasises the importance of starting early and investing wisely. He warns of the potential retirement gap due to underestimating the necessary funds and time horizon.
Shifting Financial Priorities
Younger Singaporeans are notably conservative in their retirement planning, favoring low-risk financial instruments such as savings accounts, CPF contributions, and fixed deposits. However, the current economic climate suggests a need to rethink these strategies to enhance investment returns and leverage compounding over time.
Learning from the Past
With one in three seniors regretting not saving more aggressively, there’s a clear lesson for younger generations. Adopting a proactive and growth-oriented investment approach could significantly secure their financial future. Moreover, the desire to ensure wealth transfer to the next generation is strong among millennials (78 percent) and Gen Z (68 percent), although this must not overshadow their own financial security.
Key Survey Insights
- 25 percent of Singaporeans have yet to start retirement planning due to immediate financial needs, reliance on CPF, or insufficient savings.
- Consistent and aggressive saving is acknowledged by 33 percent of seniors and 30 percent of Gen X as a significant factor in growing retirement funds.
- Investment is considered a key strategy by 41 percent of Singaporeans, though a third lack confidence due to fears of losing money, insufficient financial knowledge, and high risk.
- Healthcare needs and expenses are a primary focus in retirement planning, particularly for seniors and Gen X, with insurance coverage becoming increasingly prioritised.
The Etiqa Insurance Singapore Retirement Sentiment Study Report was conducted in collaboration with Kantar in June 2024, surveying 1,009 individuals. This study delves into the attitudes and preparedness of Singaporeans towards retirement, providing valuable insights and guidance to help individuals unlock their retirement potential.
Photo by Towfiqu barbhuiya on Unsplash and Photo by Aaron Burden on Unsplash
